Constraints of venture capital in us, Finance Basics

Constraints of Venture Capital in US

1. Require of rich investors in US, thus inadequate equity capital.

2. Inefficiencies of stock market - NSE is investors and inefficient cannot sell the shares in future. Prices do not reflect all the obtainable information in the market.

3. Infrastructural problems - this limits the increase rate of small firms that require raw unlimited access and materials to the market factors of production.

4. Require of managerial skills on part of owners and venture capitalists of the firm.

5. Nature of small business in US.  There are three (3) kinds.

a. Large MNC - these are established firms such could raise funds simply.

b. Asian owned small businesses - They are family owned thus do not need interference of venture capitalists since they are not prepared to share profits.

c. African - owned business - require venture capital but have little potential for growth.

6. Concentrate on low risk ventures as like an example confining to low growth sectors, low technology along with minimum investment risks.

7. Conservative approach via the venture capitalists.

8. Delay in project evaluation as like example months or more thus entrepreneurs lose interest in the project.

9. Lack of inefficient financial system and government support.

Posted Date: 1/30/2013 12:23:08 AM | Location : United States







Related Discussions:- Constraints of venture capital in us, Assignment Help, Ask Question on Constraints of venture capital in us, Get Answer, Expert's Help, Constraints of venture capital in us Discussions

Write discussion on Constraints of venture capital in us
Your posts are moderated
Related Questions
Commercial Banks - Banking Institutions These are financial institutions such accept deposits of money from the universal public, safeguard the deposits and create them availa


For each of the financial statement ratios listed below calculate the ratio for the current year and for the prior year. (Note that in most textbooks, some of the ratios call for a

Public Limited Companies These are joint stock companies that have sold shares to specific public and thus have attracted public money in form of share capital.  Those compani

Definition of 'Capital Budgeting': The process in which a business calculates whether projects such as building a new plant or investing in a long-term risk are worth pursuing

Cum. And Ex. - Terms Used in Capital Market Authority           These prefixes are written in front of other words as like capital, rights and dividends to qualify them."Cum" i

Working Capital a) Working capital or called gross working capital also, refers as current assets. b) Net working capital refers to current assets minus current liabilities

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

Quetion1: You are earning 5.2 percent on a certificate of deposit. Inflation is running 3.5 percent. What is the real rate of return on your investment? Question2: Search for

the nominal fee interest rate in your account is 7% your semi-annually rate of interest APY will be?